Business Objectives

Question 1

Importance of clear business objectives

Answer 1

Businesses are most likely to succeed if they set clear objectives

• employees need something to work towards.
• without objectives, the owner may not be motivated to keep going.
• objectives help on where to take the business and the steps necessary to get there.
• it’s easier to access the performance of the firm if objectives are set.

Question 2

What are the financial objectives in a business?

Answer 2

Survival-

Profit-

Sales-

Increase market share-

Financial security-

Question 3

What are the non-financial objectives in a business?

Answer 3

Social objectives-

Personal satisfaction-

Challenge-

Independence and control-

Question 4

Why might a business change objectives?

Answer 4

Market conditions 
Technology 
Performance 
Legislation 
Internal reasons

Question 5

What does executives mean?

Answer 5

Managers in an organization who help make important decisions.

Question 6

What does diversify mean?

Answer 6

If a business or country diversifies, it increases the range of goods and services produced.

Question 7

What does financial return mean?

Answer 7

Monetary return

Question 8

What does profit maximisation mean?

Answer 8

Making as much as profit in a given time.

Question 9

What does dividends mean?

Answer 9

Share of profit paid to the shareholders(owners) in the company

Question 10

What does profit satisficing mean?

Answer 10

Making enough profit, to satisfy the owner

Question 11

What does legislation mean?

Answer 11

Law or set of laws

Question 12

What does economies of scale mean?

Answer 12

Financial advantages of producing something in very large quantities.

Question 13

What does revenue mean?

Answer 13

Money from the scale of goods and services